It is well known that data communication networks such as the Internet, Wide Area Networks (WANs) and Local Area Networks (LANs), offer tremendously efficient means of organizing and distributing computerized data. These efficiencies have resulted in their widespread use for both business and personal applications. The Internet for example, is now a common medium for operating online auctions, academic and public forums, distributing publications such as newspapers and magazines, and performing electronic commerce and electronic mail transactions. It is also a common medium for distributing electronic content including audio, video, still images, text and multi-media (i.e. combinations of these forms).
In fact, the widespread use of distributed computing and file-sharing networks, such as the Internet, has enabled consumers to become distributors of digital content, allowing anyone to copy and redistribute free and/or illegal copies of songs, photographs, videos and other digital content.
Creators of media content have a property right to the content they create, usually enforceable via copyright or trademark laws. The concern is the copying and distribution of this content without compensating the rights holders. The mechanism to protect and track digital content is referred to as Digital Rights Management technology or “DRM”. DRM is widely accepted as a requirement for the distribution of media over the Internet.
Historically, copying of music was not as great a concern because of the nature of the media and the copying technology. Music was distributed on physical media such as tapes, CDs (compact disks) or vinyl albums, or via comparatively low-quality AM and FM radio transmissions. Copying content in such formats had severe shortcomings:    1. quality was not exceptional to begin with, and generally deteriorated when copied (digital CDs being a recent exception);    2. copies had to be physically transported between parties, which is generally slow, inconvenient and expensive relative to the retail price of the media being copied; and    3. copying was time consuming: copying a one hour vinyl album onto an audio tape, for example, took one hour to do.
Digital content (including software) was also distributed historically on physical media such as floppy disks or CDs. While this content is digital and thus does not deteriorate when properly copied, widespread copying is generally frustrated by the transporting difficulties and time consuming nature of the copying process described above.
However, with the emergence of pervasive digital communication networks like the Internet, the landscape has changed considerably. Digital content can now be copied with no reduction in quality, and distributed widely with almost no cost, effort or time.
To present a framework for discussion, an exemplary Internet system 30 will be described with respect to FIG. 1.
The Internet 32 itself is represented in FIG. 1 by a number of routers 34 interconnected by an Internet backbone 36 network designed for high-speed transport of large amounts of data. User's computers 38 may access the Internet 32 in a number of manners including modulating and demodulating data over a telephone line using audio frequencies which requires a modem 40 and connection to the Public Switched Telephone Network 42, which in turn connects to the Internet 32 via an Internet Service Provider 44. Another manner of connection is the use of set top boxes 50 which modulate and demodulate data onto high frequencies which pass over existing telephone or television cable networks 52 and are connected directly to the Internet via Hi-Speed Internet Service Provider 54. Generally, these high frequency signals are transmitted outside the frequencies of existing services passing over these telephone or television cable networks 52.
Web sites are maintained on servers 56 also connected to the Internet 32 which provide digital content and software applications to the User's computers 38. Communications between user's computers 38 and the rest of the network 30 are standardized by means of defined communication protocols.
Internet Service Providers (ISPs) 44, 54 or Internet Access Providers (IAPs), are companies that provide access to the Internet. ISPs 44, 54 are considered by some to be distinguished from IAPs in that they also provide content and services to their subscribers, but in the context of this document the distinction is irrelevant. For a monthly fee, ISPs 44, 54 generally provider end users with the necessary software, username, password and physical access.
Equipped with a telephone line modem 40 or set top box 50, one can then log on to the Internet 32 and browse the World Wide Web, and send and receive e-mail. Digital content can be widely distributed over this system 30 in a number of manners including:    1. posting content on Web sites stored either on the servers 56 or on the resources of the ISPs 44, 54 themselves;    2. employing peer to peer (P2P) software on a server 56 which allows users to access files stored on one another's computers 38; or    3. simply e-mailing the content files between users.
FIG. 1 is something of a simplification, as ISPs are often connected to the Internet 32 through Network Access Points (NAPs), rather than directly as shown in FIG. 1. As well, the Internet itself is far more complex than that shown in FIG. 1. However, these details would be well known to one skilled in the art and are not pertinent to the present discussion.
If the above problems could be overcome, not only would existing content be protected, but many other Content Owners would be encouraged to make their content and services available on the Internet and similar networks. This would result in far greater expansion of computer networks, content and services than even seen today.
There is therefore a need for a method and system of securely distributing media content over the Internet and similar networks, provided with consideration for the problems outlined above.